By:  Sims                                              S.B. No. 641
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to rural rail transportation districts.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Section 5, Chapter 623, Acts of 67th Legislature,
    1-4  Regular Session, 1981 (Article 6550c, Vernon's Texas Civil
    1-5  Statutes), is amended to read as follows:
    1-6        Sec. 5.  POWERS OF DISTRICT.  (a)  A rural rail
    1-7  transportation district is a public body exercising public and
    1-8  essential governmental functions and having all the powers
    1-9  necessary or convenient to carry out the purposes of this Act,
   1-10  including the powers granted in this section.
   1-11        (b)  A district has perpetual succession.
   1-12        (c)  A district may sue and be sued in all courts of
   1-13  competent jurisdiction, may institute and prosecute suits without
   1-14  giving security for costs, and may appeal from a judgment without
   1-15  giving supersedeas or cost bond.
   1-16        (d)  A district may acquire by grant, purchase, gift, devise,
   1-17  lease, or otherwise and may hold, use, sell, lease, or dispose of
   1-18  real and personal property, licenses, patents, rights, and
   1-19  interests necessary, convenient, or useful for the full exercise of
   1-20  any of its powers under this Act.
   1-21        (e)  A district may acquire, construct, own, operate, and
   1-22  maintain a system within its boundaries, both inside and outside
   1-23  the limits of incorporated cities, towns, and villages, and has the
    2-1  right to use the streets, alleys, roads, highways, and other public
    2-2  ways and to relocate, raise, lower, reroute, regulate, change the
    2-3  grade of, and alter the construction of any street, alley, highway,
    2-4  or road; any railroad track, bridge, or other facility or property;
    2-5  any gas transmission or distribution pipes, pipelines, mains, or
    2-6  other facility or property; any water, sanitary sewer, or storm
    2-7  sewer pipes, pipelines, or other facility or property; any electric
    2-8  lines, telegraph or telephone facility or property; any cable
    2-9  television lines, cables, conduits, or other facility or property;
   2-10  and pipelines and facilities, conduits and facilities, or other
   2-11  property whether publicly or privately owned, in the construction,
   2-12  reconstruction, repair, maintenance, or operation of the system.  A
   2-13  district shall pay the cost of any change made under this
   2-14  subsection and is liable for any damage to property occurring
   2-15  because of the change.
   2-16        (f)  A district has the right of eminent domain to acquire
   2-17  lands in fee simple and any interest less than fee simple in, on,
   2-18  under, or above lands, including, without limitation, easements,
   2-19  rights-of-way, rights of use of airspace or subsurface space.  The
   2-20  right may not be exercised in a manner that would unduly interfere
   2-21  with interstate commerce or unduly impair the neighborhood
   2-22  character of property surrounding or adjacent to the property
   2-23  sought to be condemned.  Eminent domain proceedings brought by a
   2-24  district are governed by Title 52, Revised Civil Statutes of Texas,
   2-25  1925, except as it is inconsistent with this Act.  Proceedings for
    3-1  the exercise of the power of eminent domain are commenced by the
    3-2  adoption by the board of a resolution declaring the public
    3-3  necessity for the acquisition by the district of the property or
    3-4  interest described in the resolution, and that the acquisition is
    3-5  necessary and proper for the construction, extension, improvement,
    3-6  or development of the system and is in the public interest.  The
    3-7  resolution of the district is conclusive evidence of the public
    3-8  necessity of the proposed acquisition and that the real or personal
    3-9  property or interest in property is necessary for public use.
   3-10        (g)  A district may enter into agreements with any other
   3-11  public utility, private utility, communication system, common
   3-12  carrier, or transportation system for the joint use of its
   3-13  facilities, installations, or properties within the district and
   3-14  establish through routes, joint fares, and, subject to approval of
   3-15  any tariff-regulating body having jurisdiction, divisions of
   3-16  tariffs.
   3-17        (h)  A district shall establish and maintain rents or other
   3-18  compensation for the use of the facilities of the system acquired,
   3-19  constructed, operated, regulated, or maintained by the district
   3-20  that are reasonable and nondiscriminatory and, together with grants
   3-21  received by the district, are sufficient to produce revenues
   3-22  adequate:
   3-23              (1)  to pay all expenses necessary to the operation and
   3-24  maintenance of the properties and facilities of the district;
   3-25              (2)  to pay the interest on and principal of all bonds
    4-1  issued by the district under this Act payable in whole or in part
    4-2  from the revenues, as they become due and payable; and
    4-3              (3)  to fulfill the terms of any agreements made with
    4-4  the holders of bonds or with any person in their behalf.
    4-5        (i)  A district may make contracts, leases, and agreements
    4-6  with, and accept grants and loans from the United States of
    4-7  America, its departments and agencies, the state, its agencies, and
    4-8  political subdivisions, and public or private corporations and
    4-9  persons, and may generally perform all acts necessary for the full
   4-10  exercise of the powers vested in it.  A district may acquire
   4-11  rolling stock or other property under conditional sales contracts,
   4-12  leases, equipment trust certificates, or any other form of contract
   4-13  or trust agreement.  Any revenue bond indenture may provide
   4-14  limitations on the exercise of the powers granted by this section,
   4-15  and the limitations apply so long as any of the revenue bonds
   4-16  issued pursuant to the indenture are outstanding and unpaid.
   4-17        (j)  A district may sell, lease, convey, or otherwise dispose
   4-18  of any of its rights, interests, or properties not needed for or,
   4-19  in the case of leases, not inconsistent with the efficient
   4-20  operation and maintenance of the system.  It may sell, lease, or
   4-21  otherwise dispose of, at any time, any surplus materials or
   4-22  personal or real property not needed for its requirements or for
   4-23  the purpose of carrying out its power under this Act.
   4-24        (k)  A district by resolution may adopt rules and regulations
   4-25  governing the use, operation, and maintenance of the system and
    5-1  shall determine all routings and change them whenever the board
    5-2  considers it advisable.
    5-3        (l)  A district may lease the system or any part to, or
    5-4  contract for the use or operation of the system or any part by, any
    5-5  operator.  A district shall encourage to the maximum extent
    5-6  practicable the participation of private enterprise in the
    5-7  operation of the system.  The provisions of Section 8 of this Act
    5-8  apply to district property which is leased or contracted for use by
    5-9  any such private enterprise participant.
   5-10        (m)  A district may contract with any county or other
   5-11  political subdivision of the state for the district to provide rail
   5-12  transportation services to any area outside the boundaries of the
   5-13  district on such terms and conditions as may be agreed to by the
   5-14  parties.
   5-15        SECTION 2.  The importance of this legislation and the
   5-16  crowded condition of the calendars in both houses create an
   5-17  emergency and an imperative public necessity that the
   5-18  constitutional rule requiring bills to be read on three several
   5-19  days in each house be suspended, and this rule is hereby suspended,
   5-20  and that this Act take effect and be in force from and after its
   5-21  passage, and it is so enacted.